Gujarat Narmada Valley Fertilizers & Chemicals

Reasons for buying:

Buy PE was reasonable at 5.72 and below 10 years PE median of 6.02. The shares are worth keeping for the long term.

10-year earnings average is 10% but lackluster and 10-Year average revenue growth is 6.03%.

Return on equity is ok at 12.26% but the 5-year average is 14.13%.

The market cap of the company is ₹6,403.25cr.

The debt of the company is ₹2.16 cr with ₹1,522.96 cr in cash. With that amount of cash, I will hold it for the long term.

Buy date: 26-Nov-2021

Qty: 25 Buy Price: ₹397.55 Buy EPS: 69.46 Buy PE: 5.72

I will stop buying when EPS drops to 19.87

Gujarat Narmada Valley Fertilizers & Chemicals Ltd is a firm engaged in the manufacturing and selling of fertilizers, industrial chemical products, and rendering information technology services. It operates in three business segments including Fertilizers, Chemicals, and Others. The company generates the majority of its revenues through the sale of chemicals.

KSE

Reasons for buying:

Buy PE was reasonable at 7.41 and below 10 years PE median of 8.78.

Earnings have increased 10 times since 2013 but lackluster and 10-Year average revenue growth is 13.02%.

Return on equity is excellent at 58.65% and the 5-year average is 32.11%.

The market cap of the company is ₹736.00cr.

The debt of the company is ₹40.46 cr with ₹123.77 cr in cash.

Buy date: 15-Nov-2021

Qty: 4 Buy Price: ₹2,131.5 Buy EPS: 287.44 Buy PE: 7.41

Q2 2021:

EPS was reduced by -33.08% to 192.36.

KSE Ltd is engaged in the manufacturing compound cattle feed. The company's operating segment includes Animal Feed; Oil cake processing and Dairy. It generates maximum revenue from the Animal Feed segment. The product line of the company consists of KS milk, KS curd, KS super, and KS supreme pellet.

Marksans Pharma

Reasons for buying:

Buy PE was reasonable at 11.81 and below 10 years PE median of 18.12. The shares are worth keeping for the long term.

Earnings have increased 5 times since 2013 but lackluster and 10-Year average revenue growth is 16.18%.

Return on equity is excellent at 31.34% but the 5-year average is 22.57%.

The market cap of the company is ₹2,447.70cr.

The debt of the company is ₹18.74 cr with ₹212.29 cr in cash.

Buy date: 18-Aug-2021

Qty: 137 Buy Price: ₹72.65 Buy EPS: 6.15 Buy PE: 11.81

The price of the stock is down about -18.83% from my buy price.

The price has dropped 10% and has added 10k worth of shares. EPS is down -1.79% to 6.04.

Buy date: 25-Oct-2021

Qty: 153 Buy Price: ₹64.85 Buy EPS: 6.15 Buy PE: 10.54

The price has dropped another 10% and has added 10k worth of shares.

Buy date: 15-Nov-2021

Qty: 172 Buy Price: ₹58 Buy EPS: 6.04 Buy PE: 9.60

Marksans Pharma Ltd is a pharmaceutical company. It s engaged in the manufacturing and marketing of pharmaceutical formulations. It manufactures analgesics, expectorants, anti-diabetic, cardiovascular, central nervous system, gastrointestinal and oncologic drugs as well as antibiotics and antiallergic medications. The company also offers Contract Research and Manufacturing Services (CRAMS) to pharmaceutical companies. It has a global market presence with the majority of the revenue generated from North America, Europe, and the United Kingdom.

Arihant Capital Markets

Reasons for buying:

Buy PE was reasonable at 7.62 and below 10 years PE median of 8.33.

Earnings have increased 8 times since 2012 and 5- Year average revenue is 4.79%.

Return on equity is good at 20.91% but the 5-year average is 16.68%.

The 5-year average return on assets is 7.38%.

The market cap of the company is ₹290.58cr.

Buy date: 12-Nov-2021

Qty: 65 Buy Price: ₹152.70 Buy EPS: 20.02 Buy PE: 7.62 

The price of the stock is down about -8.48% from my buy price.

Arihant Capital Markets Ltd is a holding company, which is engaged in the provision of financial services. It provides a gamut of products and services including equities, commodities, currency, financial planning, depository services, priority client group services (PCG), merchant banking, and investment banking services to a substantial and diversified clientele that includes individuals, corporations, and financial institutions. It also offers online and mobile trading, algorithmic trading, depository, and real estate services, as well as provides stock lending and borrowing, investment and trading webinars, insurance, and RGESS services. Geographically, all the operations function through the region of India.

Excel Industries

Reasons for buying:

Buy PE was reasonable at 14.30 and above 10 years PE median of 9.15.

Earnings have increased 4 times since 2012 but lackluster and revenues 10-Year average is 11.42. I have bought it at a premium and will try to sell it.

Return on equity is below par at 9.16% but the 5-year average is 13.99%.

The market cap of the company is ₹1,099.50cr.

The debt of the company is ₹6.09cr with ₹67.81cr in cash.

Buy date: 12-Nov-2021

Qty: 10 Buy Price: ₹959.00 Buy EPS: 67.06 Buy PE: 14.30

The price of the stock is down about -8.79% from my buy price.

Excel Industries Ltd is a chemical manufacturer based in India. The Company is organized into two business segments namely; the Chemicals segment which comprises industrial and specialty chemicals, pesticides intermediates, polymer and pharma intermediates; and the Environment segment which comprises soil enricher, biopesticides, and bioproducts. Apart from these segments company also focuses on the waste management area where it converts solid waste into organic soil conditioner. The majority of its revenues come from the Indian market, while it also has a presence in the international market.

Sahyadri Industries

Reasons for buying:

Buy PE was reasonable at 7.85 and above 10 years PE median of 5.87.

Earnings have increased 46 times since 2012 and there are lackluster results too.

Return on equity is good at 28.69%.

The market cap of the company is ₹514.98cr.

The debt of the company is ₹46.45cr with ₹51.80cr in cash.

Buy date: 12-Nov-2021

Qty: 17 Buy Price: ₹578.75 Buy EPS: 73.64 Buy PE: 7.85

The price of the stock is down about -9.97% from my buy price.

The company is engaged in the production of cement sheets and accessories, trading steel doors, and in the generation of wind power electricity. The company manufactures and sells fiber cement corrugated sheets and boards. It also manufactures non-asbestos cement boards and products. The operating segments of the company are Building materials and Power Generation. The building material segment includes roofing sheets and flat boards made of asbestos and non-asbestos fibers. The company generates a majority of revenues from the Building material division. Geographically, the group has a business presence in India and other countries, from which key revenues are derived within India.

DHP India

Reasons for buying:

PE was reasonable at 7.99 and below 10 years PE median of 8.49.

Earnings have increased 6 times since 2012 and earnings almost doubled in 2021. The 10-Year average revenue growth is 11.60%.

Return on equity is good at 26.01% and the 5-year average return on equity is 20.26%.

The market cap of the company is ₹221.21cr.

The debt of the company is ₹0.58cr with ₹78.62cr in cash.

Buy date: 26-Nov-2021

Qty: 13 Buy Price: ₹722.00 Buy EPS:92.24 Buy PE: 7.82

I will stop buying when EPS drops to 36.1

The is engaged in the manufacturing of engineering goods, such as LPG regulators, accessories, and related brass items. The company's products include Propane Regulators, Butane Regulators, LPG Regulators, Hose Assemblies, and Brass Fittings. It sells its products in the domestic, as well as export markets

Savita Oil Technologies

Reasons for buying:

Buy PE was reasonable at 5.79 and below 10 years PE median of 11.55.

Earnings have increased 4 times since 2012 and there are lackluster results too.

Return on equity is good at 22.85%.

The market cap of the company is ₹1,774.36cr.

The debt of the company is ₹0.48cr with ₹288.66cr in cash.

Buy date: 12-Nov-2021

Qty: 7 Buy Price: ₹1,297.85 Buy EPS: 223.77 Buy PE: 5.79

The price of the stock is down about -0.77% from my buy price. I will stop buying when EPS drops to 64.89.

Buy date: 18-Nov-2021

Qty: 8 Buy Price: ₹1,161.05 Buy EPS: 223.77 Buy PE: 5.18

Savita Oil Technologies Ltd manufactures and sells petroleum products. The business activity of the firm is generally operated through the petroleum products and wind power segments. Its products include Transformer oil, White oils and liquid paraffin, Lubricating oils. Petrolatum and petroleum jellies, Oxidized waxes and wax emulsions, cable filling compounds and optic fiber compounds, waterless engine coolant, and renewable energy. Geographically the group has an international business presence and derives most of the revenue from petroleum products segments.

Shri Jagdamba Polymers

Reasons for buying:

Buy PE was reasonable at 16.69 and above 10 years PE median of 9.65. I paid a premium for this stock.

Earnings have increased since 2012 and at a good rate.

Return on equity is excellent at 36.36%.

The market cap of the company is ₹905.75cr.

The debt of the company is ₹43.01cr with ₹14.04cr in cash.

Buy date: 12-Nov-2021

Qty: 9 Buy Price: ₹1,069.00 Buy EPS: 64.02 Buy PE: 16.69

The price of the stock is down about -3.65% from my buy price.

The company is in the business of manufacturing technical textiles.

TV Today Network

Reasons for buying:

Buy PE was reasonable at 11.41 and below 10 years PE median of 16.02.

Earnings have increased since 2012.

Return on equity is ok at 14.12%.

The market cap of the company is ₹2,074.08cr.

Debt-free company with ₹260.46cr in cash.

Buy date: 29-Oct-2021

Qty: 33 Buy Price: ₹298.5 Buy EPS: 26.16 Buy PE: 11.41

The price of the stock is up about 17.05% from my buy price.

The company is engaged in Television programming and broadcasting activities.

Gandhi Special Tubes

Reasons for buying:

Buy PE was reasonable at 12.63 and below 10 years PE median of 14.14.

Earnings have increased close to 55% since 2012 hoping the recent momentum from 2015 will sustain and can provide at least a 10% return.

Return on equity is good at 22.7%.

The market cap of the company is ₹558.79cr.

Debt-free company with ₹68.79cr in cash.

Buy date: 28-Oct-2021

Qty: 23 Buy Price: ₹431 Buy EPS: 34.12 Buy PE: 12.63

The price of the stock is down about 0.23% from my buy price.

The company manufactures and markets welded and seamless steel tubes of different sizes and specifications and cold-formed coupling nuts.

Dolat Algotech

Reasons for buying:

Buy PE was reasonable at 8.76 and below 10 years PE median of 15.

Earnings have increased since 2018.

Return on equity is excellent at 50.30%.

The market cap of the company is ₹1,569.04cr.

Buy date: 28-Oct-2021

Qty: 117 Buy Price: ₹85 Buy EPS: 9.7 Buy PE: 8.76

The price of the stock is up 5% from my buy price.

The company is engaged in trading in shares, securities, and commodities through various stock or commodities exchanges.

Jenburkt Pharmaceuticals

Reasons for buying:

Buy PE was reasonable at 11.02 and below 10 years PE median of 12.45.

Earnings have increased close to 4 times since 2012.

Return on equity is good at 18.49%.

The market cap of the company is ₹254.34cr.

The debt of the company is ₹3.71cr with ₹56.76cr in cash.

Buy date: 19-Oct-2021

Qty: 20 Buy Price: ₹484 Buy EPS: 43.9 Buy PE: 11.02

The price of the stock is up about 15.05% from my buy price.

The company is engaged in the manufacture of pharmaceutical formulations.

Company stock

I have a small portion of investment in company stock via SPP where the company matches my investment. As of today, the amount is 1% of my net worth. The investment policy statement suggests I should keep the money invested for a long time but I can keep my investment in the company as long as I stay with company.

+ve's if I keep my investments?

The share price can increase and when I cash in at the time of leaving it could provide me with a few months of expenses.

The expenses (currency exchange) will be less if I sell my investments in one go rather than selling every year.

How will I invest the money if I cash in?

I may use it for expenses rather than investing if I cash in now. Considering I am planning for travel, I may use it, and keeping it in shares will avoid unnecessary expenses.

I would not be selling this company either as ROE is 15% and PE is only 22.73.

-ve's:

The share price can drop when I cash in and I will lose my capital.

I have to cash in when I leave the company, can not keep it for long for the price to recover in case of a drop.

Would I be buying this company now with my money if not for SPP? I do not think so.

***

I do not see an urgency to sell now and probably will use it in case of an emergency.

October expenses

I have spent a total of ₹67,908.19 and spent ₹35,269.54 same time last year.

The top 5 expenses are medical, travel, eating out, shopping and groceries. Visited the hospital 3 times and the situation did not improve after that. I just have to live with the situation. Traveled to drop Mom at sister's place for some time. Erratic eating out and shopping for clothes without plans is expensive. If I had planned to eat out and shopped beforehand I could have saved some money. Travel and medical expenses are something I could not do anything about.